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As someone who interned at the New York ISO, the organization that operates the bulk electricity market in New York State, this article doesn't seem well resear

As someone who interned at the New York ISO, the organization that operates the bulk electricity market in New York State, this article doesn't seem well researched: > Third, Texas has a unique market structure.... The article then goes on to describe a market structure that is very similar to New York ISO and ISO-New England. It is called Location Based Marginal Pricing.

Animats 11y ago
The article is oversimplifying, of course. PJM has most of their training materials on line.[1] Those give a sense of how PJM does it. Start with "PJM 101", "Generation Basics", and "How PJM operates and dispatches". PJM has a day-ahead market, where most of the capacity is booked a day in advance, and a real-time market, where differences from the predicted load are handled. This allows everybody involved to plan ahead a day. There's also "non-economic operation", where, in the event of big problems, the PJM control center just tells generators what to do. That's for emergencies. All generators post not just a single price, but a price/output curve. Generators also post a "ramp rate"; how fast they can ramp output up or down on request. PJM's job is to optimize all this, which happens on about a five minute cycle. There are also lots of physical constraints - transmission lines and substations can only handle so much power, and policy is to run the system so that any single failure won't take it down. After a failure, the transmission system is reconfigured to become single-point failure tolerant again. There's a control room in Valley Forge, PA, (and a backup control room somewhere else) where about ten people control the wholesale power grid. California had, briefly, a system with an spot power auction every half hour, with dealers who weren't generators or power consumers, but that was abused and produced blackouts, along with the bankruptcy of PG&E. California now has a day-ahead market and a spot market for fine tuning, like PJM, which resulted in much saner operation. So does ERCOT, the Texas grid manager. It's not a raw auction every half hour. [1] http://www.pjm.com/training/course-catalog.aspx http://www.pjm.com/training/course-catalog.aspx

Animats 11y ago

The article is oversimplifying, of course. PJM has most of their training materials on line.[1] Those give a sense of how PJM does it. Start with "PJM 101", "Generation Basics", and "How PJM operates and dispatches". PJM has a day-ahead market, where most of the capacity is booked a day in advance, and a real-time market, where differences from the predicted load are handled. This allows everybody involved to plan ahead a day. There's also "non-economic operation", where, in the event of big problems, the PJM control center just tells generators what to do. That's for emergencies. All generators post not just a single price, but a price/output curve. Generators also post a "ramp rate"; how fast they can ramp output up or down on request. PJM's job is to optimize all this, which happens on about a five minute cycle. There are also lots of physical constraints - transmission lines and substations can only handle so much power, and policy is to run the system so that any single failure won't take it down. After a failure, the transmission system is reconfigured to become single-point failure tolerant again. There's a control room in Valley Forge, PA, (and a backup control room somewhere else) where about ten people control the wholesale power grid. California had, briefly, a system with an spot power auction every half hour, with dealers who weren't generators or power consumers, but that was abused and produced blackouts, along with the bankruptcy of PG&E. California now has a day-ahead market and a spot market for fine tuning, like PJM, which resulted in much saner operation. So does ERCOT, the Texas grid manager. It's not a raw auction every half hour. [1] http://www.pjm.com/training/course-catalog.aspx http://www.pjm.com/training/course-catalog.aspx